Nationally, this upswing is part of a broader rebound in the rural property market. The Real Estate Institute of New Zealand’s report highlights that traditional dairy regions like Waikato and Taranaki also saw notable increases in transactions, accounting for nearly 75% of all national dairy sales. While sales volume is up, median prices per hectare present a mixed picture. Canterbury and Waikato experienced price increases, while Southland and Otago saw declines, illustrating a market where value is highly dependent on localized factors like irrigation schemes and land quality.

The increased market activity is being fueled by a variety of buyers. Sharemilkers are moving to purchase land, while retiring farmers are taking advantage of the strong market to sell. Additionally, new equity partnerships are forming to acquire farms, indicating a healthy influx of capital and a belief in the long-term viability of the dairy business. The report notes that buyers are willing to pay a premium for fully compliant farms, suggesting a growing emphasis on sustainable and well-managed operations.

Beyond the dairy market, the report also indicates a strong recovery in other agribusiness sectors. Grazing farms, particularly in Hawke’s Bay and Otago-Southland, have seen a marked recovery in sales, driven by strong red meat prices. Similarly, finishing farms are attracting growing interest, aided by firm commodity prices and favorable seasonal conditions. This diversification of interest across farm types underscores a widespread positive sentiment in the rural economy.